Companhia Brasileira de Distribuicao (CBD) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a buy rating to a hold rating in a report issued on Monday morning.

According to Zacks, “Shares of CBD have outperformed the industry over the last six months. The company has been depicting strong improvement in Extra Hiper markets and consistent growth at Assai. Store openings and conversion of Extra Hiper stores to Assai has been boosting sales and aiding the company to accelerate the expansion of its cash-and-carry banner into new cities and states across Brazil. By the end of 2017, the company expects to complete 16 store conversions and open six to eight new Assai stores. We are also encouraged by the company’s operating efficiency and productivity projects. In the second quarter, higher gross margins and a decline in selling, general and administrative expenses at Multivarejo boosted EBITDA margin. Nevertheless, a challenging economic scenario in Brazil results in lower demand and consumer confidence. A slowdown in consumer expenditure has also been affecting the home appliances retail sector.”

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Separately, BidaskClub downgraded Companhia Brasileira de Distribuicao from a strong-buy rating to a buy rating in a research note on Wednesday, June 14th. Four investment analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of Buy and an average target price of $27.00.

Shares of Companhia Brasileira de Distribuicao (NYSE CBD) traded down 0.594% during midday trading on Monday, hitting $24.285. The company’s stock had a trading volume of 76,471 shares. The company has a market cap of $6.46 billion, a P/E ratio of 152.736 and a beta of 1.84. The company has a 50-day moving average price of $23.21 and a 200 day moving average price of $20.90. Companhia Brasileira de Distribuicao has a 1-year low of $14.08 and a 1-year high of $24.75.

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Several large investors have recently made changes to their positions in CBD. BT Investment Management Ltd acquired a new position in shares of Companhia Brasileira de Distribuicao in the 2nd quarter valued at about $14,124,000. Lord Abbett & CO. LLC acquired a new position in shares of Companhia Brasileira de Distribuicao in the 2nd quarter valued at about $8,809,000. INCA Investments LLC lifted its stake in shares of Companhia Brasileira de Distribuicao by 16.3% in the 2nd quarter. INCA Investments LLC now owns 1,878,300 shares of the company’s stock valued at $36,721,000 after purchasing an additional 263,800 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Companhia Brasileira de Distribuicao by 210.6% in the 2nd quarter. Goldman Sachs Group Inc. now owns 362,761 shares of the company’s stock valued at $7,092,000 after purchasing an additional 245,959 shares during the period. Finally, TCW Group Inc. acquired a new position in shares of Companhia Brasileira de Distribuicao in the 1st quarter valued at about $3,062,000. 3.50% of the stock is currently owned by institutional investors.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva.